If History Repeats, Bitcoin will Drop Below US$10k in the Coming Days

Bitcoin
Bitcoin

The Bitcoin price has taken a hit and is expected to fall further below this year

The year 2022 have had been quite rough for the crypto market. Bitcoin plunged more than 52% since its all-time highs and is currently levitating at around US$21,000 per coin, as per reports. Since the most popular cryptocurrency in the market has only shed more than 60% of its total value, since hitting its all-time lows, it can only be imagined where the crypto market, as a whole will stand in the upcoming years. The entire crypto market is feeling the pain of being dragged down to the grounds, especially the investors. When Terra imploded, several investors tweeted their regrets of not cashing out their profits when they had the chance, instead, they invested their savings in a volatile digital asset like Terra LUNA. A few weeks ago, investors felt relief when Bitcoin found stability at US$29,000, but this is not where the bad news was supposed to end! Bitcoin fell, again! Experts believe this is not the end. Bitcoin will further decline due to various economic and financial issues and might dive down as low as US$10,000.

It is quite heartbreaking to realize that the BTC price might fall so low. We are talking about a cryptocurrency that drove the market to new highs in 2021 and has been adopted extensively by several luxury brands and nations as the legal tender. Earlier, crypto analysts and experts had expected that BTC might reach US$100,000, instead, it might go down as low as US$10,000, which is kind of ironic. To make matters worse, the crypto market is uncannily following the global stock market. Hence, almost all external financial, economic, and financial issues are affecting the price of cryptocurrencies. Bitcoin is just another victim of change market phenomena.

Why do experts think Bitcoin might reach US$10k by the end of 2022?

Currently, Bitcoin is hovering around US$21,000 since the global crypto market fell due to the various macroeconomic environment and systematic risks inside the crypto space. BTC fell for 12 straight weeks. The crypto was staged at around US49,000 and fell below US$21,000. Even though it showed certain signs of bottoming out in mid-May and also during the beginning of April. But investors are extremely worried about the inflation data, which is, in turn, causing them to sell off their crypto investments and are moving towards more traditional and centralized assets.

Given the current macroeconomic environment, and the Federal Reserve tightening the interest rates, crypto investors are afraid that the prices may fall further. Companies that have adopted digital assets are once again preparing for both recession and ‘crypto winter’, or when the prices further fall or to cope with the fact that the crypto prices have stayed so low for such an extended period. Experts advise investors to check on their asset allocation and are also recommending utilizing Bitcoin for only a smaller part of their investor portfolios.

So, should you invest in Bitcoin right now?

Veteran financial experts are asking investors to not buy Bitcoin’s dip. BTC has suffered immense losses over the past few weeks and has wiped out billions of dollars from the crypto market. As soon as investors feel relief that the BTC price has stabilized, the token slides down again creating new horrors for the investors. Individuals who are adventurous about their money might experiment and invest in cryptocurrencies. Most of those who are quite anxious about the volatility of the market might strive away from investing in digital assets. Bitcoin has brought down major cryptocurrencies like Ethereum and is waiting to drive investors insane with more speculations!

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